Judge: Stephen I. Goorvitch, Case: 22STCV37369, Date: 2025-04-09 Tentative Ruling
Case Number: 22STCV37369 Hearing Date: April 9, 2025 Dept: 82
Urban Soccer 5 Center, LLC, Case No. 22STCV37369
v.
Hearing:
April 9, 2025
Location:
Stanley Mosk Courthouse
Department:
82 Lisa Vernola Salas, et al. Judge:
Stephen I. Goorvitch
[Tentative] Order Granting Application for
Writ of Attachment
INTRODUCTION
Cross-Complainant Lisa Marie Vernola Salas (“Salas” or
“Cross-Complainant”) moves for a writ of attachment against Cross-Defendant
Urban Soccer 5 Center, LLC (“Urban Soccer” or “Cross-Defendant”). Urban Soccer opposes the application.[1] The court grants the application in the
amount of $534,983.15.
LEGAL STANDARD
“Except as
otherwise provided by statute, an attachment may be issued only in an action on
a claim or claims for money, each of which is based upon a contract, express or
implied, where the total amount of the claim or claims is a fixed or readily
ascertainable amount not less than five hundred dollars ($500) exclusive of
costs, interest, and attorney's fees.” (Code
Civ. Proc. § 483.010.)
The court shall issue a right to attach order if the court
finds all of the following:
(1)
The claim upon
which the attachment is based is one upon which an attachment may be issued.
(2)
The plaintiff
has established the probable validity of the claim upon which the attachment is
based.
(3)
The attachment
is not sought for a purpose other than the recovery on the claim upon which the
attachment is based.
(4)
The amount to be
secured by the attachment is greater than zero.
(Code Civ. Proc. § 484.090.)
“A claim has ‘probable
validity’ where it is more likely than not that the plaintiff will obtain a
judgment against the defendant on that claim.” (Code Civ. Proc. § 481.190.) “The application
shall be supported by an affidavit showing that the plaintiff on the facts
presented would be entitled to a judgment on the claim upon which the
attachment is based.”¿(Code Civ. Proc. § 484.030.)¿ “In contested applications,
the court must consider the relative merits of the positions of the respective
parties and make a determination of¿the probable outcome of the
litigation.”¿ (Hobbs v. Weiss (1999)
73 Cal.App.4th 76, 80.) “The Attachment
Law statutes are subject to strict construction.” (Epstein v. Abrams (1997) 57 Cal.App.4th 1159, 1168.)
EVIDENTIARY ISSUES
The court rules as follows on Urban Soccer’s evidentiary
declarations: Nos. 1, 4, and 5 are overruled, and Nos. 2 and 3 are
sustained.
DISCUSSION
A. Probable Validity of the Claim
1. Salas
has demonstrated that her claim is probably valid
The application is based on Salas’s cause of action for
breach of contract. To establish a
claim for breach of contract, a plaintiff must prove: (1) The parties had a
valid contract;
(2) Plaintiff
performed under the contract or had an excuse for non-performance; (3)
Defendant breached the contract; and (4) Plaintiff was damaged as a result of Plaintiff’s
breach. (See Durell v. Sharp Healthcare (2010) 183 Cal.App.4th 1350, 1367.)
On or about July 23, 2014, the
parties entered into a commercial lease (the “Lease”).[2] Salas leased commercial property located at
12000 Firestone Boulevard in Norwalk, California (the “Premises”) to Urban
Soccer. (Salas Decl. ¶ 6, Exh. B;
Bouharkat Decl. ¶ 2, Exh. 1; First Amended Complaint (“FAC”) ¶ 13.) The Premises consist of approximately 185,130
square feet of commercial property inclusive of structures totaling
approximately 40,000 square feet. (Salas
Decl. Exh. B at ¶ 1.2) Pursuant to the
Lease, the agreed use is for “General office, sales and parking for public
soccer center and incidental thereto.” (Id.
¶ 1.7.) The term of the Lease was ten
years commencing September 1, 2014, and ending August 31, 2024. (Id. ¶ 1.3.) Although there was an option to renew the
Lease automatically, the renewal clause requires that:
“(i) Tenant is
current with all rent payment obligations; (ii) has never been late with any
rent payment obligation and (iii) does not have any other uncured breaches
under the terms of the Lease.” (see
Id. Exh. A.) Salas submits evidence
that Urban Soccer has remained in possession as a holdover tenant and that it
has failed to pay rent since approximately January 2024. (See id. ¶ 11.) Since the base rent is $41,152.55 per month,
Salas submits evidence that she has been damaged by Urban Soccer’s breach of
the Lease in the principal amount of $534,983.15 (13 x $41,152.55). (Ibid.)
2. Urban Soccer has not demonstrated a
constructive eviction
Urban Soccer argues that Salas does
not have a valid claim because she and the other tenants breached the lease: “Landlord breached the implied covenant of
quiet enjoyment and committed constructive eviction by unlawfully
double-leasing 7,784 square feet of Urban Soccer’s Premises to other two
tenants.” (Oppo. 7 [emphasis added].) Urban Soccer’s managing member, Yacine Bouharkat, declares:
Section
1.2 of the Commercial Lease provides that the Premises as “an approximate
185,130 squuare foot [sic] commercial property inclusive of numerous structures
totaling approximately 40,000 square feet.” (“Premises”). However, the Landlord
double-leased 7,784 square feet of the Premises to other tenants. Specifically,
6,505 square feet of the Premises is double leased to the adjacent tenant,
Enterprise Rent-A-Car LLC; and 1,279 square feet, of the Premises is double
leased to another tenant Key West Auto Collison Center Inc….
Due
to the fact that Landlord double-leased 7,784 square feet of the Premises to
other two tenants Enterprise Rent-A-Car, and Key West Auto Collison Center
Inc., Urban Soccer has been prevented from adding two additional soccer fields,
resulting in a loss of 20% of annual revenue.
(Bouharkat Decl. ¶¶ 3-4.) Urban Soccer also submits a declaration of
Daryl Johnson, a real estate appraiser, which includes images of the Premises
that show the 7,784 square feet that were allegedly “double-leased.” (Johnson Decl. ¶¶ 5-9.)
In fact, this evidence, including
the photos of the Premises, show that Salas has not interfered with Urban
Soccer’s use and enjoyment of the vast majority of the 185,130 square-foot Premises. (See Johnson Decl. ¶¶ 5-9.) Urban Soccer concedes that it has continued
to use multiple soccer fields on the Premises and has generated substantial
revenues from them. (Id. ¶¶
11-12.) Further, Urban Soccer remains in
possession of the Premises. (Salas Decl.
¶ 11; see Bouharkat Decl. generally.)
Because Urban Soccer remains in possession, it has not been
“constructively evicted” and its duty to pay rent continues notwithstanding the
landlord’s alleged interference with Urban Soccer’s use and possession. (Petroleum Collections Inc., supra, 48
Cal.App.3d at 846-847.)
3. Urban Soccer has not established that it
is entitled to an offset
Urban
Soccer argues that it is entitled to an offset.
Code of Civil Procedure section 483.015(b)(2) provides that the amount to
be secured by the attachment may be reduced by “[t]he amount of any
indebtedness of the plaintiff that the defendant has claimed in a
cross-complaint filed in the action if the defendant’s claim is one upon
which an attachment could be issued.”
(emphasis added.) Urban Soccer
has the burden of proof to satisfy the requirements of attachment for any
offset claim, including by showing damages in a fixed or readily ascertainable
amount. (See CCP §§ 483.015 and 483.010(a);
see also Lydig Construction, Inc. v. Martinez Steel Corp. (2015) 234 Cal.App.4th
937, 945.)
Urban Soccer claims that the alleged
double-leasing has caused Urban Soccer an estimated $1,646,670.00 in
economic losses from “what two additional soccer fields would have generated
had Urban Soccer 5 Center, LLC been allowed to use the entire leased area” for
the period 2016 through 2024. (Johnson
Decl. ¶¶ 10-11.) Urban Soccer relies on
an analysis of economic losses that considers the “Total Annual Revenue from
2016 through 2024 based on the income generated from the current ten (10)
soccer fields, reflecting the company's actual performance.” (Id. ¶ 11.) However, Urban Soccer does not show that this
claim satisfies the following requirement for pre-judgment attachment:
[A]n attachment will lie upon a cause of action for
damages for a breach of contract where the damages are readily ascertainable
by reference to the contract and the basis of the computation of damages
appears to be reasonable and definite. The fact that the damages are
unliquidated is not determinative. But
the contract sued on must furnish a standard by which the amount due may be
clearly ascertained and there must exist a basis upon which the damages can be
determined by proof.
(CIT
Group/Equipment Financing, Inc. v. Super DVD, Inc. (2004) 115 Cal.App. 4th
537, 541, citations omitted [emphasis added].)
As applied here, Urban Soccer has
not shown that the Lease provides a standard by which Urban Soccer’s economic
damages for alleged double-leasing can be determined by proof. In effect, Urban Soccer seeks to recover
lost profits—a form of consequential damages—that Urban Soccer allegedly
suffered when it could not use part of the Lease premises. Urban Soccer does not show that the Lease provides
a basis for computing such lost profits.
Accordingly, Urban Soccer’s offset claim must be denied for this reason
alone. The court also finds that Urban
Soccer’s calculations of lost profits are not reasonably certain and sufficient
to support attachment under the probable validity standard. (See Johnson Decl. ¶¶ 10-11.) Specifically, Johnson calculates “loss of
income” by dividing total “revenues” by 10 soccer fields, but he does not
explain why it should be assumed that revenues are sufficient evidence of the
loss of income for two hypothetical fields, which have not been
constructed. Accordingly, for both these
reasons, Urban Soccer has not shown that Salas’s attachment may be reduced for
alleged double-leasing.
4. Urban Soccer has not demonstrated other
breaches of the lease
Finally, Urban
Soccer contends that Salas has not proven that her claim is probably valid because:
(1) “Urban Soccer overpaid rent for years because its rent includes water and
electricity bills of other tenants;” (2) “Urban Soccer overpaid rent for years
because of Landlord’s misrepresentation of parking rights & common area
maintenance fees;” (3) “Landlord
breached the lease by failing to install the fence and gates;” and (4)
“Landlord breached the lease by withholding the assignment of the lease
unreasonably.” (Oppo. 7-10.)
“When a party’s
failure to perform a contractual obligation constitutes a material breach of
the contract, the other party may be discharged from its duty to perform under
the contract.” (Brown v. Grimes (2011) 192 Cal.App.4th 265,
277.) “Normally the question of whether a
breach of an obligation is a material breach, so as to excuse performance by
the other party, is a question of fact.”
(Ibid.) Whether a partial
breach of a contract is material depends on “the importance or seriousness
thereof and the probability of the injured party getting substantial
performance,” among other factors. (Id.
at 278.)
Urban Soccer has not shown that the
other alleged breaches of the Lease were of such importance or seriousness that
its obligation to pay rent was discharged.
Urban Soccer has not shown it vacated the Premises or was
“constructively evicted” because of these alleged breaches. (See Bouharkat Decl. ¶¶ 5-8.) Thus, as with the “double-leasing,” Urban
Soccer apparently seeks to offset Salas’s attachment based on the alleged
damages that Urban Soccer suffered because of other alleged breaches or
overpayments. However, Urban Soccer has
not shown that the Lease provides a standard by which its damages for these
alleged breaches of the Lease can be determined by proof. Moreover, even if the Lease did provide a
standard for calculating the damages, Urban Soccer does not identify, or
provides calculations for, any specific damages that it allegedly suffered from
these alleged breaches of the Lease or overpayments. (See Ibid.) To illustrate, Bouharkat declares that
“Urban Soccer has been paying more than its proportionate share in property
taxes,” but he does not state or calculate the amount of such overpayment. (Id. ¶ 5.)
Based on the
foregoing, Salas has shown that she probably has a valid claim for breach of
contract in the amount of $534,983.15. Urban
Soccer has not proven any defense to this claim or demonstrated that it is
necessarily entitled to an offset.
B. Basis for Attachment
“[A]n attachment
may be issued only in an action on a claim or claims for money, each of which
is based upon a contract, express or implied, where the total amount of the
claim or claims is a fixed or readily ascertainable amount not less than five
hundred dollars ($500) exclusive of costs, interest, and attorney’s fees.” (Code Civ. Proc. § 483.010(a).) “An
attachment may not be issued on a claim which is secured by any interest in
real property arising from agreement ….”
(Code Civ. Proc. § 483.010(b).)
Here, Salas’s application
for writ of attachment is based on a contract claim for which the total amount
allegedly due exceeds $500. The claim is
not secured by real property. The court
finds that Salas’s damages for unpaid rent are fixed and readily ascertainable
from the terms of the Lease and her declaration. Stated differently, the calculation of unpaid
rent can be easily determined from the Lease provision specifying the monthly
rent (¶ 53) and evidence concerning the number of months that Urban Soccer has
failed to pay rent while still in possession of the Premises.
Urban Soccer
contends that other types of damages, such as taxes, late fees, and interest,
may not be fixed and readily ascertainable from the Lease or may be
sufficiently uncertain such that a writ of attachment cannot issue. (Oppo. 4-5.)
In the application, Salas expressly limited the requested attachment to
unpaid rent in the amount of $534,983.15.
(Appl. ¶ 8.) Because Salas does
not seek attachment of taxes, late fees, and interest, the court need not
decide whether such damages are fixed and readily ascertainable within the
meaning of attachment law.
C. Purpose and Amount of Attachment
Code of Civil
Procedure section 484.090 states that the Court shall issue a right to attach
order if “the attachment is not sought for a purpose other than the recovery on
the claim upon which the attachment is based . . . [and] the amount to be
secured by the attachment is greater than zero.” The court finds that Salas satisfied these
requirements.
Urban Soccer’s arguments to the
contrary are not persuasive. (Oppo. 10-11.) Salas has declared, under penalty of perjury,
that “[a]ttachment is not sought for a purpose other than the recovery on a
claim upon which the attachment is based.”
(Appl. ¶ 4.) That verified
statement satisfies section 484.090.
Salas does not have an obligation to explain further why she “needs”
attachment. (Oppo. 10:1-2.) Contrary to Urban Soccer’s assertion, Salas
was not required to prove that she will suffer great or irreparable injury if
an attachment is not issued. (Oppo.
11:11-24.) A showing of “great and
irreparable injury” is only required for an application for attachment sought
on an ex parte basis. (Code Civ.
Proc. § 485.010(a).) Nor is Urban Soccer
correct in its suggestion that attachment is not appropriate in a case of this
nature.
D. Reduction of Amount to be Secured – As
discussed, Urban Soccer has not shown that the amount of attachment should be
reduced pursuant to Code of Civil Procedure section 483.015(b).
E. Exemptions – Urban Soccer has not claimed any exemptions.
F. Subject Property
Salas requests attachment of any
property of Urban Soccer, a limited liability corporation. (Application ¶ 9c.) That request is proper. “[A]ll corporate property for which a method of levy is
provided by Article 2 (commencing with Section 488.300) of Chapter 8” may be
attached. (CCP § 487.010(a).)
G. Undertaking
Code of Civil
Procedure section 489.210 requires the plaintiff to file an undertaking before
issuance of a writ of attachment. Section
489.220 provides, with exceptions, for an undertaking in the amount of
$10,000.
Urban Soccer
argues that it may be recover “costs” of defeating a “wrongful
attachment.” (Oppo. 12.)
If, upon objection to the undertaking, the court
determines that the probable recovery for wrongful attachment exceeds the
amount of the undertaking, it shall order the amount of the undertaking
increased to the amount it determines to be the probable recovery for wrongful
attachment if it is ultimately determined that the attachment was wrongful.
(Code Civ. Proc. §
489.220(b).) However, Urban Soccer does
not argue for an amount higher than $10,000.
Nor does Urban Soccer submit evidence suggesting that the probable
recovery for wrongful attachment will exceed $10,000. Therefore, Urban Soccer does not show that the
court should set an undertaking in excess of $10,000.
///
///
CONCLUSION AND ORDER
Based
upon the foregoing, the court orders as follows:
1. The court grants Salas’s application for
a writ of attachment in the amount of $534,983.15.
2. The
court orders Salas to post an undertaking in the amount of $10,000.
3. The
court’s clerk shall provide notice.
IT IS SO ORDERED
Dated: April 9,
2025 ______________________
Stephen
I. Goorvitch
Superior
Court Judge
[1] On April 3, 2025,
Salas filed an objection to the opposition on the grounds it was untimely. The objection is overruled. The opposition was timely filed and served on
April 2, 2025, five court days prior to the hearing. (See Code Civ. Proc. § 484.060(a) [the
opposition to an application for writ of attachment must be filed and served no
later than five court days prior to the hearing].)
[2] The application
for writ of attachment was brought solely by Salas. However, Urban Soccer admits in the FAC that
Salas is a party to the Lease, and Urban Soccer has not argued that Salas lacks
standing to enforce the Lease. (See FAC
¶ 13.)